India is likely to clock a growth rate of 7.5 per cent for the July-September quarter, while the Reserve Bank is expected to go for 50 basis points cut in interest rate in the first half of next year amid softer inflation, says a Barclays report.

India is likely to clock a growth rate of 7.5 per cent for the July-September quarter, while the Reserve Bank is expected to go for 50 basis points cut in interest rate in the first half of next year amid softer inflation, says a Barclays report.

According to the global financial services firm, India’s macroeconomic data is largely “favorable” and inflationary pressures are expected to stay lower for a longer.

According to official figures retail inflation stood at 5 per cent in October, while the Wholesale Price Index (WPI) contracted to 3.8 per cent during the month.

The April-June quarter GDP slipped to 7 per cent, from 7.5 per cent in the preceding quarter.

Meanwhile, RBI has also lowered its economic growth forecast for the current fiscal to 7.4 per cent, from its previous projection of 7.6 per cent.

The report further noted India’s goods trade deficit was USD 9.8 billion in October, but the services trade surplus was “resilient”, at USD 5.9 billion in September, “demonstrating strength of the country’s external sector”, it said.